Gap Closing : $555 dollars in profit. Clean and Simple
Hi,
The market opened with a 8 point gap down and went furiously down in the first 5 minutes. It is not advisable to enter the market now, as we still do not have any idea what the situation is. While you can take a plunge and play momentum by going short, you have to get out quickly. And if you encounter the sharp rebound, you will have nowhere to run. It is extremely risky to enter during the first 15 minutes of market open and I strictly advice against it.
Instead, what I recommend is to wait for a rebound and access the situation, whether market will close the gap. Well, my chance came at 9:45 am, I longed 1 contract at 1717.25, I immediately put my stop loss at 1714. When price retraced to 1716.5, I longed another 2 contracts. The trade is basically done, after I set my profit target to 1726 which yesterday's close. All I have to do now is sit back and relax. It's either being stopped out or hitting my profit target. At 10:15 am, my targets were hit and $555 just went into my account. Just like that. No Fuss.